Netflix has disrupted and conquered the world of TV, yet it continues to struggle with the movie side of its business. In less than a decade, the streaming behemoth has become synonymous with how people watch shows, compelling traditional studios to rethink their strategies amidst declining theater attendance. However, Netflix’s approach to movie production has sparked ongoing questions about its consistency and cultural impact.
A recent analysis reveals that Netflix's film output lacks the depth and cultural relevance it desperately seeks. For instance, it spent a staggering $320 million on its recent release, The Electric State—a sci-fi extravaganza co-directed by the Russo brothers—that, despite its enormous budget, has received mixed reviews and may fade from public consciousness.
Joe Russo, co-director of the film, commented on Netflix's approach to spending, stating, “(Netflix) ascribes the same algorithmic attention to something they spend a lot of money on as something they spend very little money on. By that model, you should probably just make everything for a medium number, right?” This raises valid concerns about Netflix's value assessment methods and its film marketing strategies.
As part of its mixed film slate, Netflix is concurrently releasing Happy Gilmore 2, a sequel almost three decades after the original hit, straight to streaming. While the anticipation surrounding this film is palpable, the decision to bypass theatrical release may limit its impact and longevity. Historically, movies that spark conversation upon their release maintain a foothold in cultural memory—not something typically associated with Netflix's offerings.
Ted Sarandos, Netflix's co-chief executive, discussed the phenomenon of Adam Sandler's recent projects, noting that the actor is now “mobbed” by fans after releasing films like The Ridiculous 6 on Netflix. While this represents a boost in Sandler's popularity, Sarandos highlighted the lack of discourse surrounding these Netflix films, suggesting it is not the films themselves, but rather the star power that facilitates engagement.
Steven Spielberg echoed a similar sentiment in a recent conversation with Sarandos. He pointed out that Carry-On, a Netflix-produced action thriller, had created excitement akin to a theatrical release, describing it as feeling “like a big hit in the theatre.” However, similar to other Netflix releases, the buzz around Carry-On dwindled rapidly, absent the sustained discussion that often follows box office hits. This trend indicates the streaming-only model may not sustain momentum, resulting in films quickly becoming just another addition to Netflix’s extensive library.
Looking ahead, Netflix is adapting its strategy. Greta Gerwig's Chronicles of Narnia, a highly-anticipated project, is now poised to receive an exclusive IMAX run for a month before its move to streaming. This marked shift represents a significant concession from Sarandos, who has long pushed for a solely streaming approach.
Responding to pressures from filmmakers and the industry at large, Sarandos remarked, “we’re happy to do it,” indicating a willingness to experiment with theatrical releases where they can yield significant differentiation in viewer experience. Yet, he also suggested that theater experiences are increasingly converging with at-home viewing, revealing a potential complacency within Netflix’s leadership regarding the unique value of cinema.
Reports from Ampere Analysis underscore the decline in viewership for Netflix’s original films, stating they have a quicker “decay rate” compared to licensed releases from other studios. Despite hefty investments in original productions, Netflix has yet to develop a successful long-term film franchise, raising concerns about its future in the competitive landscape of cinematic storytelling.
As the media landscape continues to shift, questions persist about Netflix's future in filmmaking. Why not embrace theatrical releases to enhance the cultural resonance of their films? With a more robust release strategy, complete with collaborative marketing initiatives, Netflix could generate hype and nostalgia around film launches that linger well beyond a few short weeks after release.
For a formidable player in the entertainment industry, Netflix is at a crossroads with its films. The company must reconsider both its production approaches and release methodologies to find its place in the evolving cultural landscape of cinema. Without making substantial changes, Netflix risks continuing its trend of cinematic forgettability, overshadowed by the success of traditional theaters that know how to construct cultural moments.
